Huntsman Releases Second Quarter 2010 Results
IMPROVED DEMAND LEADS TO SECOND QUARTER EARNINGS OF: $116 MILLION IN NET INCOME AND $257 MILLION IN ADJUSTED EBITDA
THE WOODLANDS, Texas, Aug. 5 /PRNewswire-FirstCall/ -- (NYSE: HUN)
Second Quarter 2010 Highlights
-- Revenues for the second quarter of 2010 were $2,343 million, an increase
of 27% compared to $1,846 million for the same period in 2009 and an
increase of 12% compared to $2,094 million for the first quarter of
2010.
-- Adjusted EBITDA for the second quarter of 2010 was $257 million compared
to $93 million for the same period in 2009 and $123 million for the
first quarter of 2010.
-- Net income attributable to Huntsman Corporation for the second quarter
of 2010 was $114 million or $0.47 per diluted share. This compares to
net income attributable to Huntsman Corporation of $406 million or $1.51
per diluted share for the same period in 2009 (including $531 million of
net income or $2.27 per diluted share related to our terminated merger
and related litigation) and $172 million loss or $0.73 loss per diluted
share for the first quarter of 2010.
-- Adjusted net income for the second quarter of 2010 was $75 million or
$0.31 per diluted share. This compares to an adjusted net loss of $66
million or $0.28 loss per diluted share for the same period in 2009 and
adjusted net loss of $16 million or $0.07 loss per diluted share for the
first quarter of 2010.
-- Adjusted net income and adjusted EBITDA for the second quarter 2010
includes a non-recurring $15 million pre-tax benefit to appropriately
reflect our investment in the Sasol-Huntsman maleic anhydride joint
venture. Adjusted net income also includes a $15 million pre-tax one
time reduction to interest expense related to a cross currency swap. The
combined effect of these non-recurring items was approximately $0.09 per
diluted share.
Summarized earnings are as follows:
Three months ended Three months
June 30, ended Six months ended June 30,
In millions,
except per
share amounts 2010 2009 March 31, 2010 2010 2009
Net income
(loss)
attributable
to Huntsman
Corporation $ 114 $ 406 $ (172) $ (58) $ 116
Adjusted net
income (loss)
(1) $ 75 $ (66) $ (16) $ 59 $ (333)
Diluted income
(loss) per
share $ 0.47 $ 1.51 $ (0.73) $ (0.25) $ 0.47
Adjusted
diluted income
(loss) per
share(1) $ 0.31 $ (0.28) $ (0.07) $ 0.25 $ (1.42)
EBITDA(1) $ 331 $ 874 $ (55) $ 276 $ 904
Adjusted
EBITDA(1) $ 257 $ 93 $ 123 $ 380 $ 150
See end of press release for footnote explanations
Recent Highlights
-- On April 26, 2010, we prepaid $164 million of bank term debt.
-- On June 22, 2010, we prepaid $110 million of bank term debt. The
pre-payment was equivalent to the amount we received from our
reinsurance carriers in settlement of our unpaid claims arising out of
the April 29, 2006 fire at our Port Arthur, Texas, olefins facility.
Peter R. Huntsman, our President and CEO, commented:
"The second quarter of 2010 was a strong quarter for us, the combination of a number of conditions resulted in adjusted earnings we haven't seen since 2007. We saw strong underlying demand for our products as volumes grew across all of our businesses compared to the prior year as well as the prior quarter. We increased selling prices to offset recent pressure in raw material costs. In addition, the benefits of our successful cost saving efforts implemented in 2009 are evident in the bottom line."
He continued, "The third quarter is traditionally slower than the second within the chemical industry; notwithstanding this, we believe there is still significant long term upside to our business earnings. North American and European economies, which represent approximately two thirds of our volume, still show relatively modest growth. We continue to have idle capacity in many of our products that will be more fully utilized as demand improves. We are excited about the future of HUN and will continue our efforts to improve earnings in every division of the company."
Huntsman Corporation
Operating Results
Three months ended June 30, Six months ended June 30,
In millions, except per
share amounts 2010 2009 2010 2009
Revenues $2,343 $1,846 $4,437 $3,526
Cost of goods sold 1,958 1,613 3,771 3,144
Gross profit 385 233 666 382
Operating expenses 241 233 497 455
Restructuring,
impairment and plant
closing costs 17 62 20 76
Operating income (loss) 127 (62) 149 (149)
Interest expense, net (43) (58) (104) (113)
Loss on accounts
receivable
securitization programs - (6) - (10)
Equity in income of
investment in
unconsolidated
affiliates 16 1 17 2
Loss on early
extinguishment of debt (7) - (162) -
(Expenses) income
associated with the
terminated merger and
related litigation (1) 844 (1) 837
Other income 1 - 1 -
Income (loss) before
income taxes 93 719 (100) 567
Income tax expense (39) (311) (5) (449)
Income (loss) from
continuing operations 54 408 (105) 118
Income (loss) from
discontinued
operations, net of tax
(2) 62 (2) 49 (6)
Net income (loss) 116 406 (56) 112
Less net (income) loss
attributable to
noncontrolling
interests (2) - (2) 4
Net income (loss)
attributable to
Huntsman Corporation $ 114 $ 406 $ (58) $ 116
Net income (loss)
attributable to
Huntsman Corporation $ 114 $ 406 $ (58) $ 116
Interest expense, net 43 58 104 113
Income tax expense from
continuing operations 39 311 5 449
Income tax expense
(benefit) from
discontinued operations
(1)(2) 37 (1) 29 -
Depreciation and
amortization of
continuing operations 97 99 195 225
Depreciation and
amortization of
discontinued operations 1 1 1 1
EBITDA(1) $ 331 $ 874 $ 276 $ 904
Adjusted EBITDA(1) $ 257 $ 93 $ 380 $ 150
Basic income (loss) per
share $ 0.48 $ 1.74 $ (0.25) $ 0.50
Diluted income (loss)
per share $ 0.47 $ 1.51 $ (0.25) $ 0.47
Adjusted diluted income
(loss) per share(1) $ 0.31 $ (0.28) $ 0.25 $ (1.42)
Common share
information:(3)
Basic shares
outstanding 236.4 234.0 235.6 233.8
Diluted shares 240.8 271.3 235.6 268.8
Diluted shares for
adjusted diluted income
(loss) per share 240.8 234.0 240.8 233.8
See end of press release for footnote explanations
Huntsman Corporation
Segment Results
Three months ended June 30, Six months ended June 30,
In millions 2010 2009 2010 2009
Segment Revenues:
Polyurethanes $ 932 $ 695 $ 1,699 $ 1,295
Performance Products 669 482 1,285 982
Advanced Materials 320 255 611 512
Textile Effects 213 179 408 331
Pigments 287 254 556 450
Eliminations and
other (78) (19) (122) (44)
Total $ 2,343 $ 1,846 $ 4,437 $ 3,526
Segment EBITDA(1):
Polyurethanes $ 70 $ 86 $ 122 $ 112
Performance Products 116 31 176 94
Advanced Materials 52 (1) 85 9
Textile Effects (7) (20) (7) (31)
Pigments 47 (26) 75 (55)
Corporate, LIFO and
other (47) 806 (254) 780
Discontinued
operations(2) 100 (2) 79 (5)
Total $ 331 $ 874 $ 276 $ 904
Segment Adjusted
EBITDA(1) :
Polyurethanes $ 71 $ 87 $ 123 $ 114
Performance Products 116 31 176 94
Advanced Materials 52 14 83 24
Textile Effects 8 (10) 8 (21)
Pigments 49 4 78 (12)
Corporate, LIFO and
other (39) (33) (88) (49)
Total $ 257 $ 93 $ 380 $ 150
See end of press release for footnote explanations
Three months ended June 30, Six months ended June 30,
2010 vs. 2009 2010 vs. 2009
Average Selling Price Average Selling Price
Period-Over-Period (a) (a)
Increase Foreign Foreign
(Decrease) Local Currency Sales Local Currency Sales
Translation Volume Translation Volume
Currency Impact (a) Currency Impact (a)
Polyurethanes 11% 0% 17% 21% 1% 3%
Performance
Products 12% 0% 27% 6% 2% 24%
Advanced Materials
(b) 6% 0% 25% (2)% 2% 26%
Textile Effects 6% 2% 10% 5% 3% 14%
Pigments 7% (1)% 7% 4% 1% 18%
Total Company(b) 7% 0% 19% 9% 2% 13%
(a) Excludes revenues and sales volumes from tolling and by-products
(b) Excludes APAO business sold July 31, 2009
Three Months Ended June 30, 2010 Compared to Three Months Ended June 30, 2009
Revenues for the three months ended June 30, 2010 increased to $2,343 million from $1,846 million for the same period in 2009. Revenues increased due to higher sales volumes and higher selling prices in all divisions. For the three months ended June 30, 2010, Adjusted EBITDA was $257 million compared to $93 million for the same period in 2009.
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended June 30, 2010 compared to the same period in 2009 was primarily due to higher average selling prices and higher sales volumes. Average selling prices for MDI and PO/MTBE increased in response to higher raw material costs. MDI sales volumes increased as a result of improved demand in all regions and across all major markets with the exception of appliances, while PO/MTBE sales volumes increased generally due to improved demand. The decrease in Adjusted EBITDA was primarily due to lower PO/MTBE margins partially offset by higher MDI margins.
Performance Products
The increase in revenues in our Performance Products division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased across almost all product groups primarily in response to higher raw materials costs. Sales volumes increased primarily due to higher demand across all product groups and additional sales of ethylene glycol which had previously been produced under tolling arrangements. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins. In addition, equity income from investment in unconsolidated affiliates for the three months ended June 30, 2010 increased to $16 million compared to $1 million in the 2009 period. During the second quarter of 2010, we recorded a non-recurring $15 million credit to appropriately reflect our investment in the Sasol-Huntsman GmbH and Co. KG Maleic Anhydride joint venture.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased in all regions of the world and across almost all product groups primarily due to the worldwide economic recovery. Average selling prices increased in our base resins business primarily in response to higher raw material costs and reduced product availability in the epoxy resin market, partially offset by lower average selling prices in our specialty components and formulations markets primarily as a result of changes in our product mix and competitive market pressure. The increase in Adjusted EBITDA was primarily due to higher sales volumes, higher contribution margins and lower fixed costs.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased across all business lines and in all regions primarily due to the worldwide economic recovery. Average selling prices increased primarily due to favorable changes in product mix and the strength of the Indian Rupee and Brazilian Real against the U.S. dollar. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins partially offset by higher fixed costs in part due to our second quarter 2009 acquisition of Baroda.
Pigments
The increase in revenues in our Pigments division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased primarily as a result of price increase initiatives in all regions of the world partially offset by the strength of the U.S. dollar against major European currencies. Sales volumes increased primarily due to demand recovery in Europe and North America. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins, higher sales volumes and the benefits of recent restructuring efforts.
Corporate, LIFO and Other
Corporate, LIFO and other includes unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on our accounts receivable securitization program, income (expenses) associated with the terminated merger with Hexion and related litigation, loss on early extinguishment of debt, income (loss) attributable to non-controlling interests, unallocated restructuring costs, LIFO inventory valuation reserve adjustments and non-operating income and expense. The decrease in Adjusted EBITDA from Corporate, LIFO and Other for the three months ended June 30, 2010 compared to the same period in 2009 resulted primarily from an increase of LIFO inventory valuation expense of $3 million.
Income Taxes
During the three months ended June 30, 2010, we recorded income tax expense of $39 million compared to $311 million of income tax expense in the same period of 2009. Our adjusted effective tax rate for the second quarter of 2010 was approximately 40%. We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations. As these businesses return to greater levels of profitability we expect these tax valuation allowances to eventually be removed. In the meantime, we expect our income tax rate to be fairly volatile. We expect our long term effective income tax rate to be approximately 30 - 35%. Unusual income tax rates caused by valuation allowances have no impact on our cash taxes. During the second quarter of 2010 we paid $2 million in cash for income taxes. We expect our cash tax rate to continue to be significantly less than our effective income tax rate.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2010, we had $1,185 million of combined cash and unused borrowing capacity compared to $2,510 million at December 31, 2009. The decrease from year end was primarily attributable to the reduction in unused bank credit facilities of $450 million, the repurchase of convertible notes of $382 million, repayment of $185 million of bank term debt, and an increase in primary working capital of $340 million.
Beginning January 1, 2010, as a result of changes in accounting guidelines outstanding borrowings related to the sales of accounts receivable under our accounts receivable programs are accounted for as secured borrowings. Excluding the impact of this change, our primary working capital (accounts receivable, inventory and accounts payable) increased due in part to increased demand, higher prices, partially offset by the strength of the U.S. dollar against major European currencies. Total capital expenditures were $41 million during the second quarter of 2010 compared to $39 million for the same period in 2009. We expect to spend between $225 and $250 million on capital expenditures in 2010.
On April 26, 2010, we prepaid $164 million of bank term debt. On June 22, 2010, we prepaid $110 million of bank term debt. The June pre-payment was equivalent to the amount we received in the second quarter from our reinsurance carriers in settlement of our claims as a result of the April 29, 2006, fire at our Port Arthur, Texas, olefins facility.
Below is our outstanding debt:
June 30, December 31,
In millions 2010 2009(a)
Debt:
Senior Credit Facilities $ 1,685 $ 1,968
Accounts Receivable Programs(a) 226 254
Senior Notes 442 434
Subordinated Notes 1,234 1,294
Other Debt 280 280
Convertible Notes - 236
Total Debt - excluding affiliates 3,867 4,466
Total Cash 773 1,750
Net Debt- excluding affiliates $ 3,094 $ 2,716
(a) Effective January 1, 2010, as a result of changes in accounting
guidelines, our off-balance
sheet accounts receivable securitization programs are now reported on
balance sheet as secured
debt. December 31, 2009 figures are presented on a pro-forma basis to
reflect this change.
Huntsman Corporation
Reconciliation of Adjustments
Net Income (Loss) Diluted Income (Loss)
Attributable to
Huntsman
EBITDA Corporation Per Share
Three months ended Three months ended Three months ended June
June 30, June 30, 30,
In millions,
except per
share amounts 2010 2009 2010 2009 2010 2009
GAAP $ 331 $ 874 $ 114 $ 406 $ 0.47 $ 1.51
Adjustments:
Loss on
accounts
receivable
securitization
programs - 6 - - - -
Unallocated
foreign
currency
(gain) loss - (7) (4) 3 (0.02) 0.01
Loss on early
extinguishment
of debt 7 - 4 - 0.02 -
Other
restructuring,
impairment and
plant closing
costs 17 62 17 54 0.07 0.23
Expenses
(income)
associated
with the
terminated
merger and
related
litigation 1 (844) 1 (531) - (2.27)
Discount
amortization
on settlement
financing
associated
with the
terminated
merger - - 4 - 0.02 -
Acquisition
related
expenses 1 - 1 - - -
(Income) loss
from
discontinued
operations,
net of tax(2) (100) 2 (62) 2 (0.26) 0.01
Adjusted(1) $ 257 $ 93 $ 75 $ (66) $ 0.31 $ (0.28)
Discontinued
operations $ 100 $ (2) $ 62 $ (2) $ 0.26 $ (0.01)
Restructuring,
impairment and
plant closing
costs - 1 - 1 - -
Loss on
disposition of
assets 4 4 3 3 0.01 0.01
Gain on fire
insurance
settlement (110) - (71) - (0.29) -
Adjusted
discontinued
operations(1)
(2) $ (6) $ 3 $ (6) $ 2 $ (0.02) $ 0.01
Total -
adjusted
continuing and
discontinued
operations $ 251 $ 96 $ 69 $ (64) $ 0.29 $ (0.27)
Three months ended March 31,
In millions 2010
Net loss attributable to Huntsman Corporation (172)
Interest expense, net 61
Income tax benefit from continuing operations (34)
Income tax benefit from discontinued operations
(2) (8)
Depreciation and amortization 98
EBITDA(1) $ (55)
Diluted Income
Net Income (Loss) (Loss)
Attributable to
Huntsman
EBITDA Corporation Per Share
Three months Three months ended Three months ended
ended March 31, March 31, March 31,
In millions,
except per share
amounts 2010 2010 2010
GAAP $ (55) $ (172) $ (0.73)
Adjustments:
Unallocated
foreign currency
gain (1) (6) (0.03)
Loss on early
extinguishment of
debt 155 143 0.61
Other
restructuring,
impairment and
plant closing
costs 3 2 0.01
Discount
amortization on
settlement
financing
associated with
the terminated
merger - 4 0.02
Loss from
discontinued
operations, net
of tax(2) 21 13 0.06
Adjusted $ 123 $ (16) $ (0.07)
Discontinued
operations $ (21) $ (13) $ (0.06)
Other
restructuring,
impairment and
plant closing
costs 5 3 0.01
Loss on
disposition of
assets 8 5 0.02
Gain on fire
insurance
settlement (7) (4) (0.02)
Adjusted
discontinued
operations(2) $ (15) $ (9) $ (0.04)
Total - adjusted
continuing and
discontinued
operations $ 108 $ (25) $ (0.11)
Net Income (Loss) Diluted Income (Loss)
Attributable To
EBITDA Huntsman Corporation Per Share
Six months ended Six months ended June Six months ended June
June 30, 30, 30,
In millions,
except per
share amounts 2010 2009 2010 2009 2010 2009
GAAP(2) $ 276 $ 904 $ (58) $ 116 $ (0.25) $ 0.47
Adjustments:
Loss on
accounts
receivable
securitization
program - 10 - - - -
Unallocated
foreign
currency
(gain) loss (1) (9) (10) 3 (0.04) 0.01
Loss on early
extinguishment
of debt 162 - 147 - 0.61 -
Other
restructuring,
impairment and
plant closing
costs 20 76 19 68 0.08 0.29
Expenses
(income)
associated
with the
terminated
merger and
related
litigation 1 (837) 1 (527) - (2.25)
Discount
amortization
on settlement
financing
associated
with the
terminated
merger - - 8 - 0.03 -
Acquisition
related
expenses 1 1 1 1 - -
(Income) loss
from
discontinued
operations,
net of tax(2) (79) 5 (49) 6 (0.20) 0.03
Adjusted(1)(2) $ 380 $ 150 $ 59 $ (333) $ 0.25 $ (1.42)
Discontinued
operations $ 79 $ (5) $ 49 $ (6) $ 0.20 $ (0.03)
Restructuring,
impairment and
plant closing
costs 5 1 3 1 0.01 -
Loss on
disposition of
assets 12 - 8 - 0.03 -
Gain on
hurricane
insurance
settlement (7) - (7) - (0.03) -
Gain on fire
insurance
settlement (110) - (68) - (0.28) -
Adjusted
discontinued
operations(1)
(2) $ (21) $ (4) $ (15) $ (5) $ (0.06) $ (0.02)
Total -
adjusted
continuing and
discontinued
operations $ 359 $ 146 $ 44 $ (338) $ 0.18 $ (1.45)
See end of
press release
for footnote
explanations
Conference Call Information
We will hold a conference call to discuss our 2010 second quarter results on Thursday, August 5, 2010 at 10:00 a.m. ET.
Call-in number for U.S. participants: (888) 713 - 4213 Call-in number for international participants: (617) 213 - 4865 Participant access code: 24187331
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P4LNJY8PF
The conference call will be available via webcast and can be accessed from the investor relations portion of the company's website at http://www.huntsman.com.
The conference call will be available for replay beginning August 5, 2010 and ending August 12, 2010.
Call-in numbers for the replay: Within the U.S.: (888) 286 - 8010 International: (617) 801 - 6888 Access code for replay: 71378240
About Huntsman:
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 11,000 employees and operates from multiple locations worldwide. The Company had 2009 revenues of approximately $8 billion. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
(1) We use EBITDA, Adjusted EBITDA, Adjusted EBITDA from discontinued
operations, Adjusted net income and
Adjusted net income from discontinued operations. We believe that net
income (loss) attributable to Huntsman
Corporation is the performance measure calculated and presented in
accordance with generally accepted
accounting principles in the U.S. ("GAAP") that is most directly comparable
to EBITDA, Adjusted EBITDA and
Adjusted net income. We believe that income (loss) from discontinued
operations is the performance measure
calculated and presented in accordance with GAAP that is most directly
comparable to Adjusted EBITDA from
discontinued operations and Adjusted net income from discontinued
operations. Additional information with
respect to our use of each of these financial measures follows:
EBITDA is defined as net income (loss) attributable to Huntsman Corporation
before interest, income taxes, and
depreciation and amortization. EBITDA as used herein is not necessarily
comparable to other similarly titled
measures of other companies. The reconciliation of EBITDA to net income
(loss) attributable to Huntsman
Corporation is set forth in the operating results table above.
Adjusted EBITDA is computed by eliminating the following from EBITDA: gains
and losses from discontinued
operations; restructuring, impairment and plant closing (credits) costs;
income and expense associated with the
terminated merger and related litigation; acquisition related expenses;
losses on the sale of accounts receivable to
our securitization program; unallocated foreign currency (gain) loss;
certain legal and contract settlements; losses
from early extinguishment of debt; extraordinary loss (gain) on the
acquisition of a business; and loss (gain) on
disposition of business/assets. The reconciliation of Adjusted EBITDA to
EBITDA is set forth in the Reconciliation
of Adjustments table above.
Adjusted EBITDA from discontinued operations is computed by eliminating the
following from income (loss) from
discontinued operations: income taxes; depreciation and amortization;
restructuring, impairment and plant closing
(credits) costs; losses on the sale of accounts receivable to our
securitization program; unallocated foreign
currency (gain) loss; gain on fire insurance settlement; and (gain) loss on
disposition of business/assets.
The following table provides a reconciliation of Adjusted EBITDA from
discontinued operations to income (loss)
from discontinued operations:
Three months ended June
30, Six months ended June 30,
In millions 2010 2009 2010 2009
Net income (loss) from
discontinued operations, net
of tax $ 62 $ (2) $ 49 $ (6)
Income tax expense
(benefit) 37 (1) 29 -
Depreciation and
amortization 1 1 1 1
EBITDA from
discontinued
operations 100 (2) 79 (5)
Restructuring,
impairment and
plant closing costs - 1 5 1
Loss on disposition
of assets 4 4 12 -
Gain on hurricane
insurance
settlement - - (7) -
Gain on fire
insurance
settlement (110) - (110) -
Adjusted EBITDA
from discontinued
operations $ (6) $ 3 $ (21) $ (4)
Adjusted net income (loss) is computed by eliminating the after tax impact
of the following items from net income
(loss) attributable to Huntsman Corporation: loss (income) from
discontinued operations; restructuring, impairment
and plant closing (credits) costs; income and expense associated with the
terminated merger and related litigation;
discount amortization on settlement financing associated with the
terminated merger; acquisition related
expenses; unallocated foreign currency (gain) loss; certain legal and
contract settlements; losses on the early
extinguishment of debt; extraordinary loss (gain) on the acquisition of a
business; and loss (gain) on disposition of
business/assets. The reconciliation of adjusted net income (loss) to net
income (loss) attributable to Huntsman
Corporation common stockholders is set forth in the Reconciliation of
Adjustments table above.
Adjusted net income (loss) from discontinued operations is computed by
eliminating the after tax impact of the
following items from income (loss) from discontinued operations:
restructuring, impairment and plant closing
(credits) costs; gain on fire insurance settlement; and (gain) loss on the
disposition of business/assets.
The reconciliation of Adjusted net income (loss) from discontinued
operations to net income (loss) attributable to
Huntsman Corporation is set forth in the Reconciliation of Adjustments
table above.
(2) On August 1, 2007, we completed the sale of our U.S. polymers business to
Flint Hills Resources. On November
5, 2007, we completed the sale of our U.S. base chemicals business to Flint
Hills Resources. Results from these
businesses are treated as discontinued operations. Division EBITDA from
discontinued operations only includes
the results of our U.S. base chemicals and U.S. polymers businesses. During
the first quarter 2010 we closed our
Australian styrenics operations.
(3) Diluted income (loss) per share for GAAP net income (loss) attributable to
Huntsman Corporation and for adjusted
net income (loss) attributable to Huntsman Corporation is calculated using
the following information:
Three months ended June 30, Six months ended June 30,
In millions, except per
share amounts 2010 2009 2010 2009
GAAP
Net income (loss)
attributable to
Huntsman Corporation $ 114 $ 406 $ (58) $ 116
Convertible notes
interest expense, net
of tax - 5 - 9
Net income (loss)
attributable to
Huntsman Corporation
and assumed conversion
of notes $ 114 $ 411 $ (58) $ 125
Diluted shares 240.8 271.3 235.6 268.8
Diluted income (loss)
per share $ 0.47 $ 1.51 $ (0.25) $ 0.47
Adjusted
Net income (loss)
attributable to
Huntsman Corporation $ 75 $ (66) $ 59 $ (333)
Convertible notes
interest expense, net
of tax - - - -
Net income (loss)
attributable to
Huntsman Corporation
and assumed conversion
of notes $ 75 $ (66) $ 59 $ (333)
Diluted shares 240.8 234.0 240.8 233.8
Diluted income (loss)
per share $ 0.31 $ (0.28) $ 0.25 $ (1.42)
SOURCE Huntsman Corporation
Released August 5, 2010